With all of the talk being batted around about living the frugal life, you could easily start thinking that the most inexpensive option is always the best option. But is that really true? Are there any instances where it would benefit you to choose a higher-priced option?
You bet there are. Although a tight budget requires that you carefully consider any major purchases, being frugal is not the same as being cheap. Occasionally, you will encounter cases where it is wiser to spend a little more money on your purchase in order to obtain a higher quality or additional features.
For instance, imagine that your family is shopping for a new dining room table. You might spot a small, inexpensive table that leaves room for you, your husband, and your two children. It’s not very well made, but it will provide for your immediate needs. As you shop you try to squelch your thoughts about how much you like to entertain and the fact that this smaller table will not allow you to have any dinner guests.
In another store you find a more costly table that catches your eye. This table is approximately the same size as the first one, but has the added benefit of having a leaf that can be inserted to increase the size of the table. You also notice that this table is made from solid wood rather than a laminated product.
If pressed for the truth, you know that the more expensive table is better for you and your family. It leaves room for your family to grow and to do the things that you enjoy like entertaining. And with its stronger construction you can rest assured that this table will serve your family for years to come.
However, you may be sorely tempted to buy the cheaper table. After all it’s better to spend as little money as possible, right? This scenario would be a classic example of a false economy. Sure the cheaper alternative could save a little money in the short run, but if you just have to upgrade to another new table in a few years, you’ll end up spending more money in the long run.
Whenever you’re planning a major purchase, be careful to consider the needs of you and your family. Don’t just consider your immediate needs; evaluate how those needs may change in the next few years. Once you’ve committed to the idea that a purchase is necessary, you’ll want to make sure you get as much value for your money as possible. Making purchases with the intent to use an item for a long time rather than making several less expensive purchases is the key to being frugal instead of cheap.
{ 6 comments… read them below or add one }
This year more than ever, cost cutting is a must. We try to not eat out as much and even pack lunches to work. I’ve never been a coupon person before but lately I find myself going through the Sunday paper clipping coupons and it’s great since I save at least $20 or more on my grocery runs. Next thing on the agenda is to look for a new cell phone plan. Saw Straight Talk at WalMart the other day. Been seeing a lot of good comments on line. Will have 2 check it out.
Personally, I look for more bang with my buck, particularly with items I need on a regualr basis. My cell phone is one of those and I was able to save money by shopping around for a new carrier. I was paying a high bill every month with a major carrier under contract and had a terrible experience. Now I’m with the prepaid Straight Talk network and I couldn’t be happier. I didn’t sacrifice quality since Straight Talk is on the Verizon network and I saved nearly $50 a month switiching to their unlimited plan over my previous carrier.
The cancellation fees from the contract were worth the money I’m saving with Straight Talk. You might take for granted how much you pay for cell service, but being on my own shopping around was a necessity. Straight Talk is a plan I would totally recommend.
This is definitely a “gray” area, and certainly, the cheapest is not awlays the best.
If you can find a cheaper pasta, for example, I say go for it.
Shopping for a flat screen TV? I would definitely NOT go for the cheapest. There, you need to invest in alittle quality (but at the cheapest price, of course).
My motto is why spend more than you have to.
I use the internet to find competive pricing and better services.
Money is better in my pocket than in the profits of the BIG companies.
Or have the best of both worlds. Shop thrift stores, yard sales, Craigslist, and even take a look at freecycle. At any of those you are likely to find a good quality used one for less than the price of a low quality new one (even free). And if you get one made of solid wood, you can refinish it to match your taste and the rest of your dining room.
I am a 20-something, and have just now begun to distinguish b/w the 2, thank you for the reinforcement!